Main Home

A A A

DEFINITION

A term used by the Internal Revenue Service (IRS) to define the home a taxpayer has lived in most of the time during a given taxation year, or the only home a taxpayer owns. The classification of a taxpayer's main home is important when considering gains resulting from the sale of a main home.

INVESTOPEDIA EXPLAINS

When you sell your home, you may be able to exclude the gains from your income for tax purposes if you pass the ownership and use tests. If over the previous five years you have owned the home for more than two years, and it was your main home for more than two years, then you can exclude up to $250,000 ($500,000 for joint filers) in a given tax year.

Losses resulting from the sale of your main home cannot be deducted.


RELATED TERMS
  1. Home Office

    An office located inside the taxpayer's home that serves as the taxpayer's principal ...
  2. Deferred Gain On Sale Of Home

    An obsolete tax law that applied to homeowners before May 7, 1997. The Deferred ...
  3. Reassessment

    The process of redetermining the value of a parcel of real estate for property ...
  4. Principal Residence

    The primary location that a person inhabits. It doesn't matter whether it is ...
  5. Non-Owner Occupied

    A classification used in mortgage origination, risk-based pricing and housing ...
  6. Involuntary Conversion

    A process where a taxpayer is involuntarily forced to dispose of property that ...
  7. Vacation Home

    A dwelling other than the owner's primary residence that is used for recreational ...
  8. Internal Revenue Service - IRS

    A United States government agency that is responsible for the collection and ...
  9. Land

    Property or real estate, not including buildings or equipment, that does not ...
  10. Land Value

    The value of a piece of property, including both the value of the land itself ...
Related Articles
  1. Top Tips For First-Time Home Buyers
    Home & Auto

    Top Tips For First-Time Home Buyers

  2. Cut Commissions With
    Home & Auto

    Cut Commissions With "For Sale By Owner" ...

  3. Vacation Home Or Income-Producing Investment?
    Taxes

    Vacation Home Or Income-Producing Investment?

  4. Paring Down Moving Costs
    Budgeting

    Paring Down Moving Costs

  5. My wife and I both converted our Traditional ...
    Retirement

    My wife and I both converted our Traditional ...

  6. Measuring The Benefits Of Home Ownership
    Home & Auto

    Measuring The Benefits Of Home Ownership

  7. Mortgages: Fixed-Rate Versus Adjustable-Rate
    Credit & Loans

    Mortgages: Fixed-Rate Versus Adjustable-Rate

  8. The Truth About Real Estate Prices
    Home & Auto

    The Truth About Real Estate Prices

  9. Leasing to Section 8 Tenants?
    Home & Auto

    Leasing to Section 8 Tenants?

  10. How does my debt-to-income (DTI) ratio ...
    Home & Auto

    How does my debt-to-income (DTI) ratio ...

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center